Nasdaq ISE pulls back on Bitcoin and Ethereum options trading

Key Takeaways

• Nasdaq ISE withdrew proposals for trading options on Bitcoin and Ethereum ETFs.
• Other exchanges also pulled similar proposals, with potential refilings expected.

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Nasdaq ISE (International Securities Exchange) has withdrawn proposals to list and trade options on spot Bitcoin and Ethereum exchange-traded funds (ETFs), according to filings with the SEC.

The exchange withdrew the proposals Tuesday, stating that no comments were received after the proposal was published in the Federal Register on August 12, 2024. The withdrawal notices follow similar actions by other exchanges in recent days.

MIAX, MIAX Pearl, and BOX Exchange have also retracted their respective proposals for listing and trading options on spot Bitcoin ETFs. Cboe initially withdrew its application but subsequently refiled it, potentially indicating ongoing engagement with the SEC on the matter.

NYSE American LLC joined the trend on Thursday by withdrawing its proposal to list and trade options on the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF. These moves come as the SEC has yet to approve trading for options products on spot Bitcoin and Ethereum ETFs.

Despite the withdrawals, Bloomberg Intelligence Analyst James Seyffart anticipates that both Nasdaq and NYSE will likely refile their proposals for listing and trading options on spot Bitcoin ETFs in the near future.

“I’m expecting them to re-file over the coming days or weeks like we saw from CBOE,” Seyffart stated in a post on X.

The recent wave of proposal withdrawals and potential refilings suggests a period of regulatory recalibration in the crypto ETF options market.

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